Abu Dhabi: Saudi Shura Council, the country’s formal consultative body, has passed an amendment to the Foreign Investment Law, slapping a fine not exceeding 500,000 riyals (Dh490,000) on an offending foreign investor, local media reported.
“The change provides for revoking the investment license, and withhold all or some of their benefits in case the violation continues,” Al Jazirah reported.
This came during the House’s regular session, which was held via video conference, headed by Speaker Sheikh Dr. Abdullah Al Sheikh.
The decision came after it heard a report submitted by the Economic and Energy Committee regarding a proposal to amend paragraph 2 of article 12 of the Foreign Investment Law.
Saudi Arabia is increasingly integrated in the world economy, a trend which has accelerated since the country joined the World Trade Organisation in 2005.
The Kingdom is investing significantly in developing international partnerships and trade links and is attracting foreign inbound investment and expertise.
This is supported by a strengthening legal and regulatory framework.
Many of the changes in this area demonstrate Saudi Arabia’s evolution towards global commercial rules and standards. Complying with international business standards and treaties will continue to help inbound and outbound investment succeed, which is especially important in an era of cross-border regulatory scrutiny and political anxiety about foreign investments into strategic sectors.